China Singapore Finance Beijing, January 1st (Chen Jing) After 8 years, a total of 4 leaders’ meetings, 23 ministerial meetings, and 31 rounds of formal negotiations, on November 15, 2020, "Regional Comprehensive Economic Partnership Agreement (RCEP) was signed.
Today, the RCEP Agreement has officially entered into force for 6 ASEAN member states including Brunei, Cambodia, Laos, Singapore, Thailand, and Vietnam, and 4 non-ASEAN member states including China, Japan, New Zealand, and Australia!
How will the RCEP of "Gao Da Shang" affect our lives?
"Buy, buy, buy" is not only convenient but also saves money
·0 tariff
After the agreement comes into effect, more than 90% of the goods trade in the region will eventually achieve zero tariffs. The tariffs on major products will be reduced to zero immediately and within 10 years, which is expected to benefit enterprises and consumers of various countries in a relatively short period of time.
Not only that, my country, ASEAN, South Korea and other member states that already have free trade relations have also added additional zero-tariff products to each other on the basis of the original free trade agreements.
For example, Indonesia has added 704 zero tariff lines to my country’s processed aquatic products, tobacco, salt, disinfectants and industrial chemicals, plastic products, luggage, etc.; shrimp products will drop from 5% to zero within 10 years, and rubber tires will drop from 15%. Immediately drop to zero, and the toughened safety glass will drop from 5% to zero within 10 years.
The Philippines has added 657 zero-tariff tariff lines for my country's medicines, plastics, chemical fibers, clothing, shoes, steel, and engine parts.
For example, sports shoes and boots have dropped from 15% to zero in 15 years, and motor vehicle air conditioners have dropped from 10% to zero in 15 years.
In other ASEAN countries, Brunei added 165 zero-tariff products, Thailand added 59 zero-tariff products, Cambodia added 641 zero-tariff products, and South Korea added zero tariffs on velvet, dextrin, and 4 tariff lines for clothing and ceramic tiles. .
my country also grants zero tariff treatment to 33 tariff lines including pineapple products, coconut juice, some chemicals, paper products, diesel engines, and some auto parts from ASEAN, and zero tariffs to 2 tariff lines including textiles and stainless steel from South Korea. treatment.
"The sharp drop in tariffs has enabled consumers to buy their favorite Japanese daily necessities, such as cosmetics, at low prices, instead of having to find someone to purchase on behalf of others or use "buy, buy" when traveling abroad." Chinese Academy of Social Sciences World Ni Yueju, a researcher at the Institute of Economics and Politics, said in an interview with Zhongxin Finance and Economics.
Enterprise's affordable and convenient "big gift package" can not stop
·Cumulative rules of origin
Another highlight of RCEP in the field of goods trade is the cumulative rules of origin.
According to the rules of accumulation of origin, when determining the qualification of product origin, the origin materials of each RCEP member country can be accumulated to meet the 40% value-added origin standard of the final export product, so that it is easier to enjoy preferential tariffs.
For example, if sports shoes produced in China are exported to South Korea, before the RCEP takes effect, they need to reach 40% of the regional value component in order to be exempt from 8-13% tariffs.
Under the China-South Korea Free Trade Agreement, the original materials produced by China and South Korea can only accumulate to 20%, which does not meet the 40% standard. Then the sports shoes exported from China to South Korea cannot enjoy the benefits under the China-South Korea Free Trade Agreement. Preferential tax rate.
Similarly, although there is a China-ASEAN Free Trade Area, the cumulative total of China, Indonesia, and Thailand does not reach 40%, and they cannot enjoy tariff concessions.
Under RCEP, the original materials of the four members of China, South Korea, Indonesia, and Thailand can add up to 40%, and Chinese sports shoes can be exported to South Korea to enjoy the preferential tax rate under RCEP.
The analysis believes that RCEP’s cumulative rules of origin regions make all members of the free trade zone subject to the same set of rules, allowing products to be jointly produced or processed in all member states, and it is not necessary for a single country to meet the requirements of the rules of origin separately, which substantially reduces The threshold for the products of member states to obtain the eligibility for benefits, to achieve a higher degree of trade liberalization.
Ni Yueju also believes that the cumulative rules of origin allow the value chain to be laid out in the region in an optimal way, thereby reducing production costs and lowering commodity prices.
·Facilitating trade in goods
In terms of facilitation of trade in goods, RCEP members have also reached a series of high-level rules on customs procedures, inspection and quarantine, and technical standards.
For example, RCEP simplifies customs clearance procedures and adopts efficient management methods such as advance rulings, pre-arrival processing, and information technology applications; as far as possible, the goods are released within 48 hours after arrival; for express goods, perishable goods, etc., as much as possible within 6 hours Let go.
In this way, the overall customs clearance time for goods in the region is expected to be further shortened.
The level of RCEP trade facilitation as a whole surpasses the WTO’s Agreement on Trade Facilitation.
The implementation of these facilitation rules will reduce the cost of intra-regional trade, enhance the competitiveness of products in the region, and bring more benefits to enterprises and consumers.
·Opening up service trade
From the perspective of service trade, China's service trade opening level has reached the highest level of existing free trade agreements.
Other members of RCEP have also made high-level openness commitments in many services and investment fields with commercial interests in my country, which will bring important opportunities for Chinese enterprises to better carry out service investment operations in the region.
For example, Japan has the highest level of openness, reaching the level of its commitment in the CPTPP.
The level of commitments made by South Korea and Australia in RCEP is higher than that of China-South Korea and China-Australia Free Trade Zones.
ASEAN has also made promises in RCEP that are higher than WTO and China-ASEAN 10+1.
From the perspective of service sectors that China focuses on, other parties in RCEP have committed to greater openness in the construction, engineering, tourism, finance, real estate, and transportation sectors.
These newly opened areas provide a broad market space for Chinese enterprises to "go global" and expand the layout of the regional industrial chain.
·E-commerce chapter makes shopping safer and more convenient
In recent years, the volume of cross-border e-commerce transactions in my country has increased rapidly.
Through the e-commerce model, many small and medium-sized enterprises in my country have achieved the goal of selling goods to the world.
RCEP's provisions on trade facilitation will significantly improve the efficiency of cross-border trade in customs and logistics.
The e-commerce chapter will also promote the consistency of regional e-commerce policies and reduce the operational risks and policy uncertainties faced by cross-border e-commerce.
These are all conducive to releasing the huge consumption potential in the region and promoting the further prosperity of regional cross-border e-commerce.
At the same time, commodity distribution centers can focus on developing the circulation of intermediate products.
The cumulative rules of origin will encourage production companies to purchase more intermediate products in the domain, further optimize the regional industrial layout, and will also promote the production of intermediate products in the region.
Ni Yueju said that the e-commerce chapter of RCEP is the first comprehensive and high-level plurilateral e-commerce rule achievement reached in the Asia-Pacific region, which makes online shopping more institutionalized, safer and more convenient.
Especially after RCEP came into effect, it is equivalent to the first free trade arrangement between China and Japan.
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